ASICS Increase Dividends Due to Record High Revenue

ASICS have reported record highs for net sales in the first half of 2023, with an overall revenue of $2 billion (based on current exchange rates) and a total increase of 28.9 per cent compared to the same period last year. The performance running category holds 50 per cent of the total net sales and experienced a 19.9 per cent increase.

This record high has been attributed to the ‘normalisation of social and economic activities’, especially the return of in-person sporting events. ASICS didn’t only see a gross increase, but importantly, also saw an income margin increase from 8.5 per cent in the first half of 2022 to 11.6 per cent this year. They put the rise down to an improvement in their gross margins.

While the EMEA region remained the most dominant, the Southeast and South Asia region experienced the highest growth (66.9 per cent) thanks to the increase of sales in India and Malaysia. Interestingly, the North American market is up 17.4 per cent in net sales compared to the same time last year, but the profit margin was only 0.9 per cent (which is modest compared to the next lowest which was EMEA at 10.1 per cent).

As a result of this continuously high cash flow, ASICS have amended the dividend for the end of the first half to $0.17 per share and plan to also raise the end of year dividend to $0.21 per share, which will put the total yearly dividend at $0.38 per share and is an estimated record high.